The return of Redland Water to Council on 1 July this year is expected to bring in $88 million from water and wastewater utility charges over 2012-13, providing a welcome boost to cash flow and profitability.
Redland City Council Mayor Karen Williams said the reintegration of the Water business has a significant impact on available cash funding and the higher dividend received will help minimise increases to general rates.
“Thanks to Redland Water this year’s utility charges will contribute 45% of cash funding compared to 15% last year. This will enable Council to kick start many essential projects planned for the 2012-13 financial year,” Mayor Williams said.
Council will maintain retail water pricing set by State Government legislation, but we will have no choice but to pass on increases to bulk water (wholesale water) charges imposed by State Government.
“Residents will see an annual increase of $80 to their water bill, which is largely attributable to a 22% increase in what the State charge Councils for bulk water,” the Mayor said.
“The water consumption charge will increase by 1.3% and once the water price cap imposed by the State ends on 30 June 2013 Council will continue to work to keep the price of water as low as possible for all households.”
Water and wastewater make up $12.8 million of the total expenditure of $69.9 million forecast for 2012-13 capital works program. Major projects include:
• Southeast Thornlands trunk sewer system
• Point Lookout wastewater treatment plant upgrade
• Cleveland wastewater treatment plant inlet screen
• Wastewater reticulation and treatment plant maintenance and inspections
• Mainland and SMBI water reticulation repairs and maintenance
• Biosolid treatment projects